The SWIX 40 Exchange Traded Fund (ETF) is designed to track the performance of the FTSE/JSE SWIX 40 total return index. The SWIX 40 index is a shareholder-weighted Top 40 Index that uses the share register of the top 40 companies listed on the main board of the JSE and qualifying under the Ground Rules as being eligible for inclusion in the Index to reduce the constituent weights for foreign shareholders in these stocks.
In addition, the SWIX 40 Index is adjusted for cross-holdings and strategic holdings. The impact is to reduce the weightings of mainly resource and dual-listed stocks in the Top 40 Index.
Income (including dividends) will be reinvested in the ETF on a quarterly basis. Although income is reinvested, it is deemed distributed for tax purposes. Income, net of dividend tax, will be reinvested. The amount in respect of dividend tax will be distributed and either paid to investors or with-held and paid to SARS, depending on an investor's tax status.